Jan 14 Time Warner Cable Inc shares rose
above the price of $132.50 per share offered on Monday by
smaller rival Charter Communications Inc, a deal that
was swiftly rejected by the No. 2 U.S. cable TV operator.
Time Warner Cable's shares were up 3 percent at $136.40 on
Tuesday morning, suggesting some investors expect a higher bid.
Calling the bid "grossly inadequate," Time Warner Cable
rejected the $37.3 billion offer, the third attempt by Charter
to acquire the company.
Analysts said Time Warner Cable's demand of $160 per share
was reasonable and Charter could raise its bid.
"...We believe something in the neighborhood of 10 percent
near-term upside (for Time Warner) if an agreement at TWC's
asking price of $160 were to be announced is reasonable," Stifel
Nicolaus analyst Christopher King said in a note.
Charter's Chief Executive Tom Rutledge said the company now
planned to take the deal directly to Time Warner Cable
Charter proposed to pay around $83 per share in cash and the
rest in its own stock. Including debt, the deal is worth about
Charter shares were up about 1 percent at $135.38 on the
(Reporting by Chandni Doulatramani in Bangalore; Editing by